Gold River Cabinets is approached by Ms.Mary Wong, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers.The following per unit data apply for sales to regular customers:
Gold River Cabinets has excess capacity.Ms.Wong wants the cabinets in cherry rather than oak, so direct material costs will increase by $30 per unit.Required:
a.For Gold River Cabinets, what is the minimum acceptable price of this one-time-only special order?
b.Other than price, what other items should Gold River Cabinets consider before accepting this one-time-only special order?
c.How would the analysis differ if there was limited capacity?
Definitions:
Medicare-approved Amount
The maximum amount that Medicare will pay for a covered service or item, which providers agree to accept as full payment.
Workers' Compensation Board
A government agency responsible for processing claims and providing benefits to workers injured on the job.
Industrial Injury
Physical harm or sickness resulting from an accident or exposure in the workplace.
Self-pay
A method of payment for healthcare services where the patient pays out-of-pocket, not relying on insurance.
Q11: Birch Canvas and Tarp manufactures canvas products
Q28: Measures of the balanced scorecard's financial perspective
Q38: What is the total target cost?<br>A)$9,840,000<br>B)$11,316,000<br>C)$13,352,000<br>D)$9,279,120<br>E)$1,131,600
Q52: Quality control activities have been moved from
Q55: Lumberjack Inc.is a manufacturer of equipment for
Q70: The cost components of a heater include
Q88: Which of the following statements related to
Q100: Complete a performance report for the month
Q142: _ measures the reduction in costs attributable
Q195: The Wildcat Company has provided the following